Corporate purchase?

[Dividends]

Can i purchase DVC through a corporation?


That would eliminate any financial problem that might occur(worst case scenario), corporation goes bankrupt.

Thx

 

[erionm]

Can i purchase DVC through a corporation?


That would eliminate any financial problem that might occur(worst case scenario), corporation goes bankrupt.

Thx

Yes. Corporate Member Types from the member website:

A Corporate Member is a corporation, LLC or partnership that purchases an Ownership Interest and is named on the deed.

An "Officer" is a person who has been authorized to execute the purchase documentation on behalf of a Corporate Member. An Officer is entitled to all benefits and privileges that are available to a Member and will receive a Member Card. Officers may also access Annual Dues and/or loan information and make payments on behalf of the Corporate Member.
An "Affiliate" is a person named by the Officer who is authorized to make reservations using the Corporate Member's Home Resort Vacation Points. All Affiliates must be an officer of the corporation, a member of the LLC or a partner of the partnership that owns the Ownership Interest. Affiliates are entitled to receive the benefits and privileges of a Member and are issued a Member Card. However, Affiliates may not access financial information related to the Annual Dues and/or loan pertaining to the Corporate Member's Ownership Interest.

 

[Dividends]

Thank so much

 

[sivertcf]

First off, a big thanks to everyone here. I've been reading a lot over the last few weeks while I consider buying DVC.

I am wondering about this corporate ownership thing&

Can the corporation assign new "officer" and "affiliate" as time goes by?

-=-=-

The resale market is hurt by limitations placed on resale (-vs- direct purchase) ownership.

Would it not be possible to register an LLC which owns my DVC property? Then, when I go to sell, I just sell the LLC. The LLC names the new owner as its new officer. Because the LLC is still the original owner of the property, it is still a direct-purchase property.

Also, I think a sale could be made without ROFR.

Would this work?

 

[tjkraz]

The resale market is hurt by limitations placed on resale (-vs- direct purchase) ownership.

Would it not be possible to register an LLC which owns my DVC property? Then, when I go to sell, I just sell the LLC. The LLC names the new owner as its new officer. Because the LLC is still the original owner of the property, it is still a direct-purchase property.

Also, I think a sale could be made without ROFR.

Would this work?

Possibly but take a step back and consider your ultimate goal. Most people who are knowledgable enough to consider resale in the first place realize that the trading options are virtually worthless.

How much of a premium do you think you're going to get when all you're offering is the ability to overpay for a Disney Cruise or non-DVC hotel stay? Depending on the amount of points you hope to purchase, it may not even justify the cost of establishing and maintaining the LLC.

As for ROFR, that's mostly a buyer problem rather than a seller problem. The seller gets his money one way or another. I don't see where avoiding ROFR provides you with any benefits.

Consider that you may run into difficulties with brokers when it comes time to sell. The Timeshare Store sells DVC contracts...they don't sell LLCs. And there are buyers who want to purchase a DVC contract...not an LLC. No matter how beneficial you make it seem.

Lastly, it seems that this would only work if you sell your entire point holdings all at once. If, over time, you purchase 3 contracts totaling 500 points, your plan will only work if you find a buyer for the entire LLC with its 3 contracts and 500 points.